ment; but I did not, and of course could not, state, on hearing such a suggestion for the first time, that Her Majesty's Government would or would not make a proposal of the nature indicated by Mr. Fish. His telegram to General Schenck, of the 27th ultimo, was sent after I had received, and in consequence of, your Lordship's telegram of the same day, the contents of which I communicated to him, and in which your Lordship stated that the apparent absence of instructions to the American Minister, with whom the negotiation was being conducted, was a great obstacle to an arrangement. [From British Blue Book "North America," No. 9, (1872,) p. 21.] No. 54. Earl Granville to Sir E. Thornton. FOREIGN OFFICE, May 17, 1872. SIR: I have received your dispatch of the 30th ultimo, reporting your conversation with Mr. Fish on the subject of the indirect claims; and, in reply, I have to acquaint you that Her Majesty's Government approve your guarded language on this subject, as reported in your dispatch. I am, &c., GRANVILLE. [From British Blue Book "North America," No. 9, (1872,) p. 21.] No. 55. Earl Granville to General Schenck. DEAL, May 17, 1872. MY DEAR GENERAL SCHENCK: If the Senate agree with the Presi dent of the United States to adopt the proposed Treaty Article, I shall instruct Sir Edward Thornton to sign it, in order to save time. I shall be glad to have your opinion as to how the same object could be obtained with regard to the notes communicating the Treaty Article to the Tribunal of Geneva, of which we agreed I had better prepare a draft. Should I remit it to you or to Sir Edward Thornton? GRANVILLE. [From British Blue Book "North America,” No. 9, (1872,) p. 21.] No. 56. General Schenck to Earl Granville. [Extract.] 58 GREAT CUMBERLAND PLACE, HYDE PARK, May 18, 1872. (Received May 18.) It appears to me that, when you instruct Sir Edward Thornton in regard to signing the Treaty, if it should be concluded, it would be as well to have the joint note to the Arbitrators, bringing it to their notice, signed at the same time by him and Mr. Fish. If it were not for the greater convenience, and saving of time when time may be precious, I confess I should have been glad if you and I could have put our hands and seals to it together. [From British Blue Book "North America," No. 9, (1872,) p. 22.] No. 57. Sir E. Thornton to Earl Granville.1 (Extract.) WASHINGTON, May 20, 1872. (Received June 2.) On Sunday I called upon Mr. Fish at his own house, and having previously heard that the Committee on Foreign Relations had agreed by a majority of 4 to 3, or, as some said, of 5 to 2, upon its report on the Article, and had actually made it to the Senate in secret session, I asked Mr. Fish whether he could tell me what the amendments were which had been made to the Article. He replied, that he was not in possession of the words of the Article, as it had been reported by the Committee to the Senate, but would endeavor to describe them to me. He said that the first paragraph of the Article, down to the words "Great Britain," would remain the same; but that, with regard to the next paragraph, the Committee had objected that Her Majesty's Government had not yet declared, but was only now going to declare, by the present article, that the principle involved in the second contention would guide its conduct for the future. The Committee also thought it better that the "Government" should be substituted for the "President" in the third paragraph, and as it seemed to have an objection to the phrase, "adhering to its contention," it had been proposed that it should be altered, and that both Governments should then agree that their conduct in future, and in their relations with each other, should be guided by the above-mentioned principle. Mr. Fish said that the committee supposed that neither Government wished to bind itself in this Article as to its rela tions with any other Power. If Mr. Fish's description is correct, it would not seem that any alteration has been made in the substance of the Draft Article. Your Lordship will have perceived that, in sending the Draft Article to the Senate for its advice, the President quoted the precedent of the Treaty of 1846 on the Northwest Boundary. If the Draft Article should be now approved, and if the same precedent is still to be followed, the Article will have to be signed, and again submitted to the Senate for its sanction. This must either be done before the 29th instant, the day now fixed for the final adjournment of the session, or the President will have to summon an extraordinary session of the Senate, for the purpose of submitting to it the signed Article. The substance of this dispatch was received by telegraph on the 20th of May. No. 239.] No. 58. General Schenck to Mr. Fish. LEGATION OF THE UNITED STATES, London, May 25, 1872. (Received June 5.) SIR: I forward herewith copies of a correspondence which has taken place between Lord Granville and myself in regard to the proposed identic notes to be communicated to the Arbitrators at Geneva, in case of the new Treaty Article being adopted, together with a copy of His Lordship's original draught of said identic notes sent to me in his letter of the 20th instant. I have the honor to be, sir, your obedient servant, (In the absence of General Schenck,) BENJAMIN MORAN. [Inclosure 1 in No. 58.] Earl Granville to General Schenck. FOREIGN OFFICE, May 20, 1872. SIR: We agree that it might save time, in case of the Treaty being adopted, if I were to prepare a form of notes from Her Majesty's Government and the Government of the United States, communicating the Treaty to the Tribunal of Arbitration at Geneva. I therefore send you the draught which I have prepared. I have the honor to be, with the highest consideration, sir, your most obedient, humble servant, GRANVILLE. [Inclosure 2 in No. 58.] Draught of Identic Note to the Arbitrators. The undersigned, Agent of Her Britannic Majesty, (Agent of the United States,) is instructed by Her Majesty's Government (the Government of the United States) to transmit between to the accompanying Declaratory Convention, concluded on Her Britannic Majesty and the United States of America, by which it is provided that. in consideration of the agreement therein set forth, the President of the United States will make no claim on the part of the United States in respect of the indirect losses stated in the Case presented on the part of the Government of the United States to the Tribunal of Arbitration on the 15th of December, viz: "The loss in the transfer of the American commercial marine to the British flag, the enhanced payments of insurance, and the addition of a large sum of the cost of the war and the suppression of the rebellion." In accordance with the provisions of this Convention the undersigned has the honor, on the part of the Government which he represents, to request that no claims for indirect losses as aforesaid may be entertained by the Tribunal. [Inclosure 3 in No. 58.] General Schenck to Lord Granville. TORQUAY, May 22, 1872. MY LORD: Your note of the 20th, covering a draught of a form of note suggested for communicating the new Treaty Article, if adopted, to the Arbitrators, was delivered to Mr. Moran last evening, and reached me here this morning. I shall hasten to submit it by telegraph to Mr. Fish, so that, if the occasion comes, no time may be lost in having it ready as agreed on. I have the honor to be, with the highest consideration, your Lordship's most obedient servant, ROBERT C. SCHENCK. [From British Blue Book "North America," No. 9, (1372,) p. 23.] No. 59. Mr. Fish to General Schenck. (Communicated by Mr. Moran, May 25, 11.45 a. m.) [Telegraphic.] The Senate will undoubtedly amend the proposed Article. The terms of the note to the Arbitrators cannot be fixed until the language of the Article is agreed upon. FISH. [From British Blue Book "North America," No. 9, (1872,) p. 23.] No. 60. Earl Granville to Sir E. Thornton. FOREIGN OFFICE, May 25, 1872-3 p. m. SIR: I have given to the United States Legation a copy of the inclosed draft of preamble to a Treaty, in which the Article now before the Senate would be contained, supposing that the Article should come out from the Senate in a form which Her Majesty's Government could accept. You may give it confidentially to Mr. Fish, explaining to him that the preamble has been framed with reference to that contingency alone, aud in order to save time in the two Governments coming to an agree ment on the terms of preamble if this contingency should be realized. I am, &c., GRANVILLE. No. 61. Mr. Fish to General Schenck. [Telegram.] DEPARTMENT OF STATE, Washington, May 26, 1872. (Sent at 2.30 a. m.) The President having requested an expression by the Senate of their disposition in regard to advising and consenting to the formal adoption of the Article proposed by the British Government, as communicated in your telegram of May 10, that body has amended the proposed Article, and agrees to advise and consent to its adoption in the following terms: Down to and including the words Great Britain, the same as in the Article proposed; then the following: And whereas the Government of the United States has contended that the said claims were included in the Treaty; and Whereas both Governments adopt for the future the principle that claims for remote or indirect losses should not be admitted as the result of failure to observe neutral obligations, so far as to declare that it will hereafter guide the conduct of both Governments in their relations with each other: Now, therefore, In consideration thereof, the President of the United States, by and with the advice and consent of the Senate thereof, consents that he will make no claim on the part of the United States, in respect of indirect losses as aforesaid, before the Tribunal of Arbitration at Geneva. You will, without delay, inform Lord Granville that, in pursuance of this action of the Senate, the President will negotiate a new Article in the terms and to the effect of the foregoing. You will also say to him that the two Houses of Congress have passed a concurrent resolution to adjourn sine die on the 29th instant, and that a treaty embodying the Article must be presented to the Senate and receive its approval. It is important, therefore, that authority be speedily given to Her Majesty's Minister here to sign the convention, if the British Government concludes to enter into the agreement. A copy of the Article1 has been furnished to Sir Edward Thornton. The differences between the Article suggested by Great Britain, submitted to the Senate May 13, and the article adopted by the Senate May 25, are shown in parallel columns below. The left-hand column gives the text proposed by Greât Britain; the right-hand column shows the alterations made by the Senate: Whereas the Government of Her Britan nic Majesty has contended in the recent correspondence with the Government of the United States as follows, namely: That such indirect claims as those for the national losses stated in the Case presented, on the part of the Government of the United States, to the Tribunal of Arbitration at Geneva, to have been sustained by the loss in the transfer of the American commercial marine to the British flag; the enhanced payments of insurance; the prolongation of the war, and the addition of a large sum to the cost of the war and the suppression of the rebellion-Firstly, were not included in the Treaty of Washington, and further, and secondly, should not be admitted in principle as growing out of the acts committed by particular vessels, alleged to have been enabled to commit depredations upon the shipping of a belligerent, by reason of such want of due diligence in the performance of the neutral obligations as that which is imputed by the United States to Great Britain; and Whereas the Government of Her Britannic Majesty has also declared that the principle involved in the second of the contentions, herein before set forth, will guide their conduct in future; and Whereas the Government of the United States has contended that the said claims were included in the Treaty; and Whereas the President of the United Whereas both Governments adopt for States, whilst adhering to his contention the future the principle that claims for that the said claims were included in the remote or indirect losses should not be Treaty, adopts for the future the principle admitted as the result of failure to observe contained in the second of the said conten- | neutral obligations, so far as to declare tions, so far as to declare that it will here- | that it will hereafter guide the conduct after guide the conduct of the Government of both Governments in their relations of the United States, and the two countries with each other: Now, therefore, are therefore agreed in this respect. In consideration thereof, the President of the United States, by and with the advice and consent of the Senate thereof, consents that he will make no claim on the part of the United States, in respect of indirect losses as aforesaid, before the Tribunal of Arbitration at Geneva. |